Embodiments disclosed herein relate to payment systems. In particular, some embodiments relate to methods, apparatus, systems, means and computer program products for processing rewards in a payment processing network.
Payment card loyalty programs have been in widespread use for some time. Most consumers who hold payment cards participate in some form of loyalty program, including merchant-specific frequent buyer programs, airline mileage programs, or the like. In general, these programs are successful, as many consumers who participate in loyalty programs indicate that their participation in the programs has an impact on their purchasing decisions.
Unfortunately, the ubiquity of these programs has led to dilution of their impact. With so many programs, and so little differentiation, customers' behaviors are not directly driven by the programs. As a result, many customers do not actively participate in many loyalty programs even after they have enrolled.
The reward delivery mechanism for most loyalty programs has primarily been the use of store coupons, statement inserts or other printed coupons that require a customer to redeem the coupon in a future purchase. Currently, it is estimated that the percentage of reward coupons that are redeemed by customers is less than 1% of the total coupons distributed.
Further, many merchants simply do not have the expertise or ability to effectively use their customer data to develop and administer reward programs. It would be desirable to reduce the barriers to consumers to make it easier for them to participate and receive rewards. It would further be desirable to provide systems and methods that allow merchants to easily deploy and administer rewards programs.